
CA CDTFA-230 (Formerly BOE-230) 2017-2025 free printable template
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Understanding the CA CDTFA-230 Form
What is the CA CDTFA-230 Form?
The CA CDTFA-230, previously known as the BOE-230 form, is a resale certificate used in California. This form allows sellers to purchase items without paying sales tax, as long as they intend to resell those items in the regular course of their business. It is primarily used by businesses that sell tangible personal property and enables them to avoid the upfront sales tax on goods purchased for resale.
How to Fill the CA CDTFA-230 Form
Filling out the CA CDTFA-230 form requires specific information. Users need to provide their seller’s permit number, specific details about the type of property being purchased for resale, and the vendor's name. It's important to accurately describe the property to ensure compliance with tax regulations. This form must be completed in its entirety and should be signed by the purchaser to validate the resale exemption.
Benefits of Using the CA CDTFA-230 Form
Utilizing the CA CDTFA-230 form offers several advantages for businesses. It streamlines the purchasing process by eliminating the upfront burden of sales tax, allowing businesses to manage cash flow more effectively. Furthermore, by using this form, companies ensure compliance with California tax regulations, thereby avoiding potential penalties associated with improper tax handling.
Common Errors and Troubleshooting
When filling out the CA CDTFA-230 form, errors can lead to compliance issues. Common mistakes include incorrect seller permit numbers, lack of a signature, and incomplete descriptions of property. It is beneficial to double-check each entry to prevent delays in processing and issues with tax authorities. If problems arise, reviewing the completed form against provided instructions can help identify errors.
Who Needs the CA CDTFA-230 Form?
The CA CDTFA-230 form is essential for California businesses engaged in selling tangible personal property. Businesses that purchase items for resale, such as retailers, wholesalers, and service providers, must utilize this form to obtain tax-exempt status for their inventory purchases. It is a necessary tool for any company aiming to ensure compliance while managing their tax obligations effectively.
State-Specific Rules for the CA CDTFA-230 Form
California has specific rules governing the use of the CA CDTFA-230 form. These regulations dictate that the form must be completed accurately and used only for qualifying purchases. Misuse of the resale certificate can lead to severe penalties, including fines and back taxes owed. Businesses must stay informed about any updates to legislation that may affect the use of this form.
Frequently Asked Questions about california resale form
What is the difference between the BOE-230 and CA CDTFA-230?
The BOE-230 form was the previous designation of the resale certificate in California. It has been updated and rebranded as the CA CDTFA-230 form to reflect changes in the state's tax administration.
How long is the CA CDTFA-230 form valid?
The CA CDTFA-230 form does not expire as long as the seller has a valid seller's permit. However, businesses should regularly ensure that all information provided is accurate and up to date.